N.Y. Comp. Codes R. & Regs. Tit. 9 § 2505.4 - Security deposits
Regardless of any contract, agreement, lease or other
obligation heretofore or hereafter entered into, no person shall demand,
receive or retain a security deposit for or in connection with the use or
occupancy of housing accommodations, which exceeds the rent for one month in
addition to the authorized collection of rent; provided, however, that where a
lease in effect on December 1, 1983 validly required a greater security
deposit, such requirement may continue in effect during the term of such lease
and any renewals thereof with the same tenant. However, no owner shall demand,
receive or retain a security deposit or advance payment for or in connection
with the use or occupancy of a housing accommodation by any tenant who is 65
years of age or older, which exceeds the rent for one month for any lease or
lease renewal entered into after July 1, 1996. Such security deposits shall be
subject to the following conditions:
(a) the security deposit shall be deposited
in an interest-bearing account in a banking organization;
(b) the person depositing such security
deposit shall be entitled to receive, as administrative expenses, a sum
equivalent to one percent per annum upon the security money so
deposited;
(c) at the tenant's
option, the balance of the interest paid by the banking organization shall be
applied for the rental of the housing accommodation, or held in trust until
repaid, or annually paid to the tenant; and
(d) the owner otherwise complies with the
provisions of article 7 of the General Obligations Law.